Correlation Between ANTA SPORTS and KB Financial
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and KB Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ANTA SPORTS and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA SPORTS PRODUCT and KB Financial Group, you can compare the effects of market volatilities on ANTA SPORTS and KB Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ANTA SPORTS with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and KB Financial.
Diversification Opportunities for ANTA SPORTS and KB Financial
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and KBIA is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and ANTA SPORTS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ANTA SPORTS PRODUCT are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and KB Financial go up and down completely randomly.
Pair Corralation between ANTA SPORTS and KB Financial
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the KB Financial. In addition to that, ANTA SPORTS is 1.13 times more volatile than KB Financial Group. It trades about -0.01 of its total potential returns per unit of risk. KB Financial Group is currently generating about 0.19 per unit of volatility. If you would invest 5,700 in KB Financial Group on October 20, 2024 and sell it today you would earn a total of 250.00 from holding KB Financial Group or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. KB Financial Group
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| KB Financial Group |
ANTA SPORTS and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and KB Financial
The main advantage of trading using opposite ANTA SPORTS and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, KB Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KB Financial will offset losses from the drop in KB Financial's long position.| ANTA SPORTS vs. Summit Materials | ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. SOLSTAD OFFSHORE NK | ANTA SPORTS vs. Applied Materials |
| KB Financial vs. Aluminum of | KB Financial vs. ANTA SPORTS PRODUCT | KB Financial vs. GREENX METALS LTD | KB Financial vs. Penn National Gaming |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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